You can create fast games with vm languages... Just not as fast as native code... obviously
Not so obviously.
There is no real evidence to suggest that JIT compilers are necessarily any slower than AOT (ahead-of-time) compilers. Most current implementations are slower, but they have been steadily gaining ground over the past few years, and in many areas approaching the speed of native code.
In addition, several JIT languages also provide an AOT option (for example, Mono's AOT compiler, or pretty much anything targeting LLVM), which renders moot the entire debate.